The pan-European STOXX 600 closed 0.23% higher at 576.34, hitting its longest monthly winning streak since March 2024. Bourses in Germany and France added 0.25% and 0.3%, respectively.
The broader banking index was steady for the day, having risen 4.5% this week, supported in part by the UK budget, which spared the sector from tax rises.
“They were expecting something like potentially a levy on banks to come through in the UK budget, and nothing came through, which was good news for that sector,” said Michael Field, chief equity strategist at Morningstar.
The sector was also the top performer for the month, up over 4%, its fifth-straight monthly rise, as investors shifted amid concerns over valuations that drove a global tech sell-off this month.
Spain’s bank-heavy benchmark index rose over 2% in November. The Basic Resources sector led gains on Friday, up 1.2%, powered by copper prices touching a record high. The sector was the top performer for the week, climbing 5.7%. Investors mostly refrained from making major bets heading into the weekend, with Friday’s U.S. market session shortened by a holiday.
Renewed concerns about a potential AI bubble triggered a global sell-off early in November, but investor sentiment improved on rising expectations that the Fed will cut U.S. interest rates in December, following dovish comments from policymakers and weaker economic data.
Next week, investors expect some focus on Russia-Ukraine peace talks. Under pressure from Washington, Kyiv has signalled support for a U.S.-drafted framework but said key issues must be resolved, while Moscow insists on Ukraine surrendering strategic eastern territory.
Although hopes of progress gave some support to overall sentiment in Europe, they weighed on the region’s aerospace and defence stocks, with the sector down more than 8% this month and underperforming all of its peers.
“What they’re (investors) getting skittish about now in the last month is whether a peace deal in Ukraine is going to happen,” said Morningstar’s Field.
Among individual stocks, Delivery Hero jumped 14.6% after a report said investors were pushing management to consider a sale of all or parts of the business.
The Italian luxury group Ferragamo gained as much as 2.3% after JP Morgan upgraded it to “neutral”, citing improved brand momentum.
Hotel operator Whitbread dropped 11.4% after saying that British budget measures would cost it 40-50 million pounds ($66 million) in its next fiscal year, as a sharp increase in business rates threatened to squeeze its margins.
Global futures markets reopened after CME Group suffered one of its longest outages in years, halting trading across stocks, bonds, commodities and currencies.
